Position of Large Power Producers in Electricity Markets of North Western Europe. Report for the Dutch Energy Council on the Electricity Markets in Belgium, France, Germany and The Netherlands

For a discussion among experts on the strategic behaviour of energy companies the position of large power producers in electricity markets in northwestern Europe is investigated. This report describes how power markets in European Member States are restructured due to the liberalisation process and how these markets function. Subsequently, the market positions of large power producers are analysed. In current power markets, large power producers seem to profit from the inheritance of national energy policy from the past. Furthermore, market incumbents seem to be able to maintain their position by raising market entry barriers and can gain profit from this advantageous position. The report also analyses factors that may influence the position of large power producers, such as market regulation, expansion of interconnector capacity, environmental regulation and technical innovation